Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON JUDICIARY

Date:02/26/2010
ATTENDANCE
Time:01:48 PM to 04:05 PM
Court
X
Gardner B.
X
Place:HCR 0107
Kagan
X
King S.
*
This Meeting was called to order by
Miklosi
X
Representative Levy
Nikkel
*
Pace
X
This Report was prepared by
Ryden
*
Jessika Shipley
Waller
X
McCann
*
Levy
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB10-1104
HB10-1164
HB10-1346
HB10-1336
HB10-1246
Amended, Referred to Appropriations
Witness Testimony and/or Committee Discussion Only
Referred to the Committee of the Whole
Referred to Appropriations
Postponed Indefinitely


01:49 PM -- House Bill 10-1104

Representative Looper returned to finish the discussion of House Bill 10-1104, which began on Monday, February 8, 2010. She distributed prepared amendment L.011 (Attachment A).
BILL:HB10-1104
TIME: 01:49:59 PM
MOVED:Gardner B.
MOTION:Adopt prepared amendment L.011 (Attachment A). Representative Looper explained the amendment. The motion passed without objection.
SECONDED:Waller
VOTE
Court
Gardner B.
Kagan
King S.
Miklosi
Nikkel
Excused
Pace
Ryden
Excused
Waller
McCann
Excused
Levy
Not Final YES: 0 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: Pass Without Objection

100226AttachA.pdf

BILL:HB10-1104
TIME: 01:52:19 PM
MOVED:Court
MOTION:Refer House Bill 10-1104, as amended, to the Committee on Appropriations. The motion passed on an 8-0 roll call vote, with 3 members excused.
SECONDED:Gardner B.
VOTE
Court
Yes
Gardner B.
Yes
Kagan
Yes
King S.
Yes
Miklosi
Yes
Nikkel
Excused
Pace
Yes
Ryden
Excused
Waller
Yes
McCann
Excused
Levy
Yes
Final YES: 8 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS

01:53 PM -- House Bill 10-1164

Representative A. Kerr, prime sponsor, presented House Bill 10-1164 concerning service of process in actions concerning incidents that may be covered by a motor vehicle insurance policy. The bill requires an auto insurance policy contract to include a provision that appoints the insurance company as the agent of the insured for service of process (service) or other civil filing for which the insured can possibly claim coverage. This applies when the insured cannot be found. An injured party can receive payments under his or her uninsured motorist coverage regardless of whether the at-fault party is insured if:

the alleged at-fault party cannot be located;
the service on the insurance company is insufficient or ineffective;
the accident report fails to disclose the name of the at-fault party's insurance company; or
the insurance company is unknown.

Representative Kerr responded to questions from the committee.

02:00 PM --
Jon Sands, State Farm, spoke in opposition to the bill. Mr. Sands discussed an unworkable liability aspect of the bill. He expressed his opinion that the bill is not limited to individuals who intentionally absent themselves from the jurisdiction. He stated that the bill will create additional layers of litigation. He indicated that the bill will result in motor vehicle insurance policies becoming more expensive. Mr. Sands responded to questions from the committee.


02:18 PM --
Jeff Ruebel, Colorado Defense Lawyers' Association, spoke in opposition to the bill. Mr. Ruebel discussed the ethical rules of conduct for attorneys. He talked about the obligations of insurance companies to defend their insured. His concerns arise from the fact that the bill requires attorneys to defend clients who are unavailable for consultation, which creates a number of problems. Mr. Ruebel responded to numerous questions from the committee. The committee discussed Rule 4 of the Colorado Rules of Civil Procedure regarding process.

02:43 PM --
David Brougham, American Insurance Association, spoke in opposition to the bill. Mr. Brougham stated that he feels strongly about figuring out a way to limit the liability of an insurance company to the parameters of the insurance policy. He discussed the idea of capping the payments to an injured party under the provisions of the bill to the amount of the existing uninsured motorist coverage. He reiterated the concerns of previous witnesses about the difficulties in defending a client who is unavailable. He talked about the reasons a defendant might be absent from Colorado.

02:55 PM --
Jim Croshal, Colorado Trial Lawyers' Association, spoke in support of the bill. Mr. Croshal discussed the difficulties inherent in serving an individual who has disappeared. Such difficulties make it impossible for the party who was not at fault in an accident to access insurance benefits. He talked about the methods and procedures insurance companies have for remaining in contact with their insured clients. Plaintiffs' lawyers do not have the same kinds of resources. He expressed concerns with limiting the provisions of the bill to uninsured or underinsured motorist coverage. He addressed several questions and concerns that were raised by members of the committee and the opposition witnesses.

03:27 PM --
Ed Breece, representing himself, spoke in support of the bill

03:27 PM -- Michael Bucher, representing himself, spoke in support of the bill.



03:30 PM

The committee discussed the bill. Representative Levy announced that the bill would be laid over.

03:33 PM -- House Bill 10-1346

Representative Kagan introduced House Bill 10-1346. The bill extends the period that temporary and emergency rules adopted by the executive branch agencies remain in effect from 3 months to 120 days.
BILL:HB10-1346
TIME: 03:33:36 PM
MOVED:Kagan
MOTION:Refer House Bill 10-1346 to the Committee of the Whole. The motion passed on an 8-0 roll call vote, with 3 members excused.
SECONDED:King S.
VOTE
Court
Yes
Gardner B.
Excused
Kagan
Yes
King S.
Yes
Miklosi
Excused
Nikkel
Yes
Pace
Yes
Ryden
Yes
Waller
Excused
McCann
Yes
Levy
Yes
Final YES: 8 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS




03:34 PM -- House Bill 10-1336

Representative Schafer introduced House Bill 10-1336. The bill creates the School Safety Resource Center Cash Fund and allows the Department of Public Safety to solicit gifts, grants, and donations to pay for the costs of operating the School Safety Resource Center. The department is also authorized to charge a fee on attendees to offset the costs of any training programs or conferences that the center provides. She discussed the bill's fiscal note, and how many individuals are expected to attend the center's conferences and training programs.

03:38 PM --
Erick Scheminske, Department of Public Safety, testified in support of the bill. He spoke to the reasons why the department supports the bill and explained that the bill gives the department the authority to accept and expend gifts, grants, and donations.
BILL:HB10-1336
TIME: 03:43:29 PM
MOVED:Ryden
MOTION:Refer House Bill 10-1336 to the Committee on Appropriations. The motion passed on an 11-0 roll call vote.
SECONDED:Court
VOTE
Court
Yes
Gardner B.
Yes
Kagan
Yes
King S.
Yes
Miklosi
Yes
Nikkel
Yes
Pace
Yes
Ryden
Yes
Waller
Yes
McCann
Yes
Levy
Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS




03:44 PM -- House Bill 10-1246

Representative Miklosi introduced House Bill 10-1246 and distributed two prepared amendments to the bill, L.002 and L.003 (Attachments B and C). The committee previously considered the bill on February 12, 2010. Representative Miklosi explained the amendments.
BILL:HB10-1246
TIME: 03:46:12 PM
MOVED:Miklosi
MOTION:Adopt prepared amendment L.002 (Attachment B). The motion passed without objection.
SECONDED:Court
VOTE
Court
Gardner B.
Kagan
King S.
Miklosi
Nikkel
Pace
Ryden
Waller
McCann
Levy
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

100226AttachB.pdf

03:46 PM

The committee discussed prepared amendment L.003 and the liability imposed by the amendment and the bill.



03:59 PM

Jery Payne, Office of Legislative Legal Services, discussed the term "knowingly" and how it relates to the liability imposed by the amendment. Representative Miklosi responded to questions from committee members regarding the amendment.
BILL:HB10-1246
TIME: 04:01:40 PM
MOVED:Miklosi
MOTION:Adopt prepared amendment L.003 (Attachment C). The motion was withdrawn.
SECONDED:Court
VOTE
Court
Gardner B.
Kagan
King S.
Miklosi
Nikkel
Pace
Ryden
Waller
McCann
Levy
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Withdrawn

100226AttachC.pdf


BILL:HB10-1246
TIME: 04:03:56 PM
MOVED:Miklosi
MOTION:Postpone indefinitely House Bill 10-1246. The motion passed on an 11-0 roll call vote.
SECONDED:Court
VOTE
Court
Yes
Gardner B.
Yes
Kagan
Yes
King S.
Yes
Miklosi
Yes
Nikkel
Yes
Pace
Yes
Ryden
Yes
Waller
Yes
McCann
Yes
Levy
Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

04:05 PM

The committee adjourned.